Exxon warns oil inventories near critical lows, Brent could spike to $150-160
Exxon executive Neil Chapman warned that disruptions tied to the Iran war could push global oil inventories to all-time lows within weeks. He said physical Brent cargoes could spike to $150-160 per barrel once stocks bottom out.
Speaking to CNBC, Exxon executive Neil Chapman said global crude inventories could fall to all-time lows within weeks because of disruptions linked to the Iran war and the Strait of Hormuz chokepoint. He warned that physical Brent cargoes could spike to $150-160 per barrel once stocks bottom out. While a 60-day ceasefire extension between Washington and Tehran is under discussion, the underlying uncertainty over production and shipping is pushing traders to defend their inventories.
Chapman's remarks come as OPEC+ continues to operate with limited spare capacity. Echoing earlier notes from Goldman Sachs and Citi, Exxon argued that unless global demand declines sharply, the inventory drawdown could continue. In the United States, the Strategic Petroleum Reserve is at a relatively low level, weakening the price buffer that policymakers can deploy.
The potential upside move in oil prices puts the global inflation picture back in focus. Recent ECB and Federal Reserve minutes underscored that energy-driven inflation has proved more persistent than expected. This article is not investment advice; readers considering exposure should consult a licensed adviser.
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